Earlier on June 25, Vince Valentini, Managing Director and Equity Research at TD Cowen, joined BNN Bloomberg to discuss how investor sentiment toward telecom is improving. Valentini began by explaining that the Canadian telecom sector, in particular, has been weak over the past 2 years due to a price war and balance sheet struggles. As a result, investors have been playing defense. But he stated that the industry is starting to show signs of a turnaround. Specifically for wireless, he says there are green shoots of more pricing discipline. He estimated that ~60% to 65% of Canadian wireless customers had already repriced to a lower rate, which suggested that a lot of the pain is almost done.
Grand View Research reported that the global telecom services market was valued at ~$1,983.08 billion in 2024. This is expected to reach ~$2,874.76 billion by 2030 at a CAGR of 6.5% from 2025 to 2030. Despite telecom stocks increasing by about 11% in 2024, the number lagged behind the S&P 500’s 25% and NASDAQ’s 30% gains, which prompted telecom CEOs to seek new avenues for higher stock valuations. However, it’s also important to recognise that the industry has historically oscillated between high-growth and slow-but-steady periods, with average global dividend yields of about 4%. It is now projected to focus on cost-cutting, capital expenditure control, monetizing past investments, and strategic M&A through 2030.
That being acknowledged, we’re here with a list of the 8 most undervalued telecom stocks to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top undervalued telecom stocks with a forward P/E ratio under 20, as of September 8. We then selected the 8 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
8 Most Undervalued Telecom Stocks to Invest In
8. SurgePays Inc. (NASDAQ:SURG)
Forward P/E Ratio as of September 8: 9.23
Number of Hedge Fund Holders: 2
SurgePays Inc. (NASDAQ:SURG) is one of the most undervalued telecom stocks to invest in. On August 28, SurgePays announced the complete deployment of its ClearLine SaaS platform across all 17 Market Basket Food Stores in North Carolina. The initiative marks a key milestone in SurgePays’ strategy to generate recurring, high-margin SaaS revenue through a nationwide rollout of its retail media solution.
The ClearLine platform transforms mounted flat screens into retail media hubs that can display video ads, dynamic promotions, coupons, and QR codes in real-time. The technology is designed to engage shoppers, foster brand loyalty, and create new advertising revenue streams for retailers.
The company’s future goal includes using AI to power marketing decisions based on factors such as the day, time of day, inventory, and marketing budgets. The ClearLine software now allows for the easy upload and real-time management of content.
SurgePays Inc. (NASDAQ:SURG) is a financial technology and telecom company in the US. It has 2 segments: Mobile Virtual Network Operator/MVNO Telecommunications and Comprehensive Platform Services.
7. SK Telecom Co. Ltd. (NYSE:SKM)
Forward P/E Ratio as of September 8: 9.85
Number of Hedge Fund Holders: 8
SK Telecom Co. Ltd. (NYSE:SKM) is one of the most undervalued telecom stocks to invest in. On September 8, Aduna, which is a global aggregator of network APIs, announced a new commercial partnership with SK Telink, which is a subsidiary of SK Telecom. The 2 companies have signed an MoU to expand developer access to standardized telecom APIs and accelerate their adoption globally.
The collaboration will help integrate Korea into the global network API ecosystem. The partnership uses the CAMARA open-source project and aims to simplify how developers interact with network functions. By combining Aduna’s unified integration platform with SK Telecom’s advanced infrastructure and digital expertise, with SK Telink leading the commercialization strategy, the companies will drive cross-operator alignment and deployment of programmable telecom capabilities.
Initially, the focus will be on high-value security and identity services, including Number Verification, SIM Swap detection, and Know Your Customer/KYC, which are crucial for preventing fraud and enhancing digital trust in sectors like banking and fintech.
SK Telecom Co. Ltd. (NYSE:SKM) provides wireless telecommunication services in South Korea. It has 3 segments: Cellular Services, Fixed-Line Telecommunications Services, and Other Businesses.